Nonprofits have Unique Underwriting Needs
The ARC of Butte County is a well-known community nonprofit organization, dedicated to helping individuals with developmental disabilities. For 54 years, the local chapter of ARC has helped area clients with disabilities live fulfilled lives, providing them with on-the-job opportunities, homemaking skills and support services.
Michael McGinnis, longtime Executive Director for the ARC of Butte County, is well aware of the challenges nonprofits have in raising funding. So when it came time to look for financial to help ARC become more efficient in their operations, he looked at alternatives to regular financial institutions.
Knowing that nonprofits have a different cash flow system than a traditional retail or manufacturing businesses, and that most traditional banks utilize financial analysis models that make it difficult to underwrite loans for nonprofits, McGinnis approached 3CORE as a potential financing source.
3CORE knew this partnership would have great potential for both associations, and that lending to the ARC would also be good for the community.
ARC qualified for not only one, but two loans through 3CORE. The first helped ARC replace a second deed of trust with a working capital loan that offered a significantly lower interest rate. This lower payment helps ARC keep their monthly operating expenses at a reasonable level.
A second loan from 3CORE was used to purchase a solar system, installed on their Park Tower Pavilion building, resulting in lower utility costs. Both of these loans have allowed the ARC to realize their long run strategy of running more efficiently as a business.
“My favorite experience working with the 3CORE staff was the fact that they are professional and efficient,” Michael said. “When they made commitments, they always met them, and their customer service was excellent.”
With a little help from the team at 3CORE, ARC is operating efficiently and is able to focus on their core mission of providing critical services to our developmentally disabled neighbors in Butte County. Thanks for everything you do, ARC!
